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Whether you are keen on small investments or playing it big,
We provide financial advice and distribute various investment/financial products with the most efficient & widest range, customized specifically to your NEEDs.

Thursday, February 1, 2018

*KEY BUDGET HIGHLIGHTS

*INDIA BUDGET HIGHLIGHTS*

*#* FY18 fiscal deficit at 3.5% of GDP, target was 3.2% but the slippage was widely expected (fiscal deficit is flat YoY). Fiscal deficit for FY19 forecasted at 3.3% of GDP as compared to consensus forecast of 3.2%. Govt is committed towards Fiscal Reforms and Budgetary Management (FRBM) Committee report, will bring down central govt debt to GDP ratio to 40%

*#* FY19 Market Loans forecasted at Rs 6.06 trillion ($ 95bn) as compared to Rs6 trillion in FY18 (budget forecast was Rs5.8 trillion, few days back it was raised by Rs0.2 trillion).

*#* Higher direct tax revenue and divestment is partly making up for shortfall in GST (only 11 months of GST collection will reflect in FY18)

*Tax:*
*#* Long Term Capital Gains (LTCG) exceeding Rs1lakh will be taxed @10% without benefit of indexation. All gains till 31st Jan 2018 will be grandfathered ie.any gain earned after 31st Jan 2018 will be charged at 10% (ex. If a stock had touched 120 before 31st Jan 2018, and the sale happens at 140..then tax will be on 20 and not on 140—cost). STCG will be cont to be taxed at 15%....tax on distribution of equity oriented at 10%, this will hurt the dividend MF options. FM expects these schemes will bring Rs200bn in the first year…

*#* TAX benefit for MSMEs: Extends reduced corporate tax rate of 25% to companies with turnover <Rs2.5bn. In the last budget this reduced tax rate was floated for cos with turnover <Rs0.5bn abd benefited 25% of total companies filing tax returns..

*#* No change in tax for salaried tax payers. Avg tax paid by salaried tax payers is ~Rs76,000 per person as compared to Rs25,000 per person in case of business tax payers. Standard deduction of Rs40,000 in lieu of transport and medical expenses (this was anyway ~Rs33,000).

*#* Senior citizen incentives : exemption on interest income on FDs/Post office deposit to be increased from Rs10,000 to Rs50,000. Raising limit of health insurance from Rs30,000 to Rs50,000.

*Rural Income/ Housing:*
*#* Focus on rural income and affordable housing continues – LT target is to double farm income by 2022 and provide house to every poor by 2022.

*#* In this year govt would raise MSP for Kharif crop (monsoon) to 1.5x of cost of produce

*#* Railways: Aims to electrify 4000kms of railway lines in FY19. Maintenance of track infrastrucrure and safety will be the focus. Aims to do 3600 km of track renewal in FY19. Deployment of escalatators, CCTVs, wifi on stations

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